Why Use a Realtor & How They Work
As a consumer in the real estate market, you will benefit from the services of an experienced REALTOR throughout the property buying or selling process. A REALTOR has a fiduciary relationship with their clients. A fiduciary is someone who acts for the benefit of another in a relationship founded on trust and confidence. The duty of loyalty requires an agent to put the principal's interests above all others, including their own interests.
Fiduciary duties:
Loyalty
Confidentiality
Disclosure
Obedience
Reasonable care and skill
Accountability
L.C.D.O.R.A.
REALTORS spend most of their time:
Counseling buyers and sellers
Showing property to buyers
Marketing their current listings
Monitoring transactions from the purchase to closing
Previewing property for buyers and sellers
Holding "Open Houses"
Researching mortgage financing options
Keeping informed of current market trends
Understanding legal issues that affect Real Estate
Continuing professional education
All of this activity is done with a desire to earn your loyalty and to build a personal reputation for the highest standard of professional service available. Without question, the Real Estate business is a people business.
For the most part, people selling the property pay a commission to their listing broker, based on a percentage of the selling price. The listing broker then splits the commission with both the buyer's broker and their respective agents.
Since REALTORS are self-employed they receive no salary, company car, expense account, vacation pay, health insurance, retirement, social security benefits, etc. At their own expense, REALTORS also pay for.
REALTORS are not paid for their efforts until and only after successfully completing a property transaction. Most REALTORS are paid the same regardless of which real estate company is listing the property.
REALTORS have a contractual agreement with their real estate company that they may list and sell real estate as an independent contractor representing the parent company.
At the time of closing, after all the work has been completed to the satisfaction of everyone concerned, the real estate commission is generally paid from the seller's proceeds. In certain circumstances, part of the commission may be paid by the buyer. The commission is then divided between the company / sales associate representing the seller and the company / sales associate representing the buyer.
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